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A troubling pattern of “financial mismanagement” and legal problems for the IAM

It seems to be a recurring pattern – IAM officials finding themselves in legal hot water over mismanagement of their members’ union dues. The Department of Labor’s office of Labor-Management Standards office lists well over 100 instances of criminal or embezzlement charges against IAM officials since 2002. Here are some additional recent examples of the more than 100 instances of criminal or embezzlement charges against IAM officials since 2002 as documented by the U.S. Department of Labor:

  • In September 2016, the IAM’s international office barred Frank Molina, former president of its Wichita, Kan., District 70 headquarters, from holding union office for five years amid accusations that he misspent union funds. The IAM’s international office was forced to take over daily operations of the Wichita local in March and has met with both the FBI and the U.S. Department of Labor about operations there. The IAM itself said the action was “triggered by allegations of serious financial mismanagement” at District 70, which represents more than 8,000 people.
  • Raul Mascote, former secretary-treasurer of the IAM Lodge 2458 in Minooka, Ill., pleaded guilty in June 2016 to embezzling $62,263 of its members’ dues. U.S. Department of Labor prosecutors also allege that Mascote knowingly converted $510,973 worth of U.S.-government property to his personal use.
  • Oscar Luevano, former financial secretary-treasurer of the Transportation Communications Union Lodge 5050 (an IAM affiliate) in Covina, Calif., was sentenced to eight months of home confinement and five years of probation for embezzlement of funds. Luevano was also ordered to pay $104,410 in restitution. He had previously pled guilty to embezzling $132,939 of member dues

These repeated examples of corruption and criminal activity make one wonder why IAM officials can’t just play by the rules when it comes to their members’ money, and why they seem to have such a hard time with truth and honesty. Whatever the reason, it certainly begs the questions: Would you trust the IAM with your money? Could you rely on them to make good decisions on your behalf?